Evening star. [volume] (Washington, D.C.) 1854-1972, 1887-09-07
GOSSIP ABOUT THE n. Ann n
Vfce.Prcsidena Spencer Gives His
Views on the Situation.

PIERREPoNr MORGAN SAYS NIB. GARRETT HAS MOI
SOLD HIS sToCK-rHE TELEGRAPH NOT YET GONE
TO GOULD, But PROBABLY WILL
The gossip In regard to the coming change In
The Baltimore and Ohio presidency and the new
policy TO be pursued In the management of the
road continues active IN New York Philadelphia,
and Baltimore. A Baltimore paper says that the
finance committee and the board OF directors of
the Baltimore and Ohio company Will at the Octo-
Der meeting have up the matter OF the half yearly
dividend. II is definitely said that this has not
been discussed, and one OF the prominent stock
holders In the board says he does not believe the
Idea OF passing the dividend Is entertained, but
Ihal one VIII De made as usual An inside letter
received In Baltimore from New York gives some
points OF interest concerning the negotiations with
has had a talk with Morgan on the Baltimore and
Ohio. He says the syndicate take the 5000. 600
preferred stock, and the parties with whom they
deal will guarantee that this shall control the
road This together with the $50 600 bonds. Is
placed abroad, so that the ten millions viii come
In money from the other side. The bonds are Sc
cured by
A LIEN ON THE WASHINGTON BRANCH,
on terminals In several places, and on various
other properties including bridges over the Ohio
River" Mr.. Garrett may, while abroad, make an
extended trip in the East He IS reported to be
booked by steamer for home on October D.
Mr.. Spencer was interviewed yesterday In New
York city in relation 10 the conflicting statements
status OF the property and its actual relations to
the syndicate and the other trunk lines. He was
asked: What foundation Is there ior the state;
of the syndicate OF which Mr.. Pierrepont Morgan
tend7"
WHAT Mr.. SPENCER SAYS.
Mr.. Spencer, In reply, said: 1.-The statement Is
absolutely without foundation. The syndicate
does not want control. 1t simply desires that the
same relations shall exist between the Baltimore
and Ohio and the other trunk lines that now OBJ
tain b tween, say, the Pennsylvania Railroad and
the Reading. and the Erie, and the New York Gen.
trail" Mr.. Spencer said that this had been dis
tinctly reafIirmed this morning In conversation
with Mr.. Morgan. Harmony and cooperation
do not mean subserviency OF any one interest.
The same syndicate practically funded the
floating debt OF the Erie Railway, and no SUBJ
serviency TO New York Central power fol-
lowed The same bankers backed the Reading
reorganization, but there has been no sue
cumbing TO Pennsylvania Railroad dOmina-
ton In fact both these companies, which were in
TAR weaker positions than the Baltimore and Ohio,
are stronger and much better able 10 pro-
tect their interests, develop their resources
and serve the communities along their
respective lines by reason OF their asSoci-
alton with the strong-monied powers OF this
country and England. The syndicate has the
greatest interest now In the growth and progress
OF the Baltimore and Ohio, and to secure this
growth and progress absolute Independence OF
other corporate predominanee is essential and the
road must be worked In the interest OF the cities
and territories 1t reaches.
This CONDITION OF HARMONY
Is easily obtainable, and Is as much In the
interest OF the Baltimore AID Ohio as OF
any other line. There is no agreement or stip-
ulation that the Reading and New Jersey
Central contracts with the Baltimore and Ohio
shall In any way be iIterfered with; in fact, they
cannot be without the consent OF all three corpo-
rationS, which are parties TO them, as they are
legal and binding upon all OF Them There is no
truth In the Statement. that 81 600 900 of the Bal
ttnore and Ohio obligations were lifted on Sep
TENDER i. No such amount was due, and there
was no pressure upon the company at the time,
The loan secured through the syndicate was for
future use, and the proceeds will be used only as
.It was stated that you would succeed to the
81 have nothing whatever to say upon that sub
Jet; IL will be time enough to discuss that when
retire."
Mr. MoRGAN's TALK ABOUT THE TELEGRAPH
A New York special telegraphed last night as
follows: "vice-President spencer was In the city
to-day and had long consultation with j. Pierre
pont Morgan, at the latters Office When asked IL
II were true that he had been selected as Mr. Gar
retts successor, Mr.. spencer replied that all talk
about Mr. Garrett signing and about his taking
his place was entirely premature. He added that
Mr.. Garrett had not sold his Baltimore and Ohio
STOCK, and that there was no probability that he
would When asked what assurances there were
that the preliminary contract with the syndicate
would be carried out In the event of change in he
control OF the road Mr.. Spencer replied that there
was no probability OF any such contingency but
In any event the contract was with the company
were fulfilled j. PierreponJ Morgan, when asked
II Mr.. spencer had been selected by the syndi.
cate as Mr.. CARROTS successor, replied that he
cid not know that Mr.. Garrett had resigned and
he did not know that the question OF a successor
had been considered by the syndicate. Mr. Spen-
Ger was a very good man, he said and he did not
want TO be understood as depreciating his quail
0cationS for the position. President King, OF the
Erie, arrived In the city to-day, and declared that
In no event should he leave the Erie TO return to
the Baltimore and Ohio. Edward Lauterbach
who obtained much familiarity with the affairs OF
the Baltimore and Ohio, while acting as counsel
for Henry 5. Ives, has been employed by the svn-
dictate TO investigate into the condition OF the
Baltimore and Ohio as preliminary 10 signing
rnal report There were no important develop
EenIS today In regard TO the deal
THE TELEGRAPH has NOT YET GONE TO JAY GOULD
but Is regarded as sure to go to him at his own
terms when he is ready to take it. which will
probably be when he can get the Commercial Ca
Bile and the Postal Telegraphs at the same time.
MT. SpencerS declaration that the Baltimore and
ONO Will De run as an independent trunk line not
suoServlent 10 the pennsylvania IS regarded as
true enough, but as not really explaining the act
ual situation The conditions imposed by the syn
oeate make IL clear that the Baltimore and Ohio
must abandon all opposition to the Pennsylvania
30 Tar as New York is concerned, cease its war Of
rates and get Into this city on terms satisfactory
10 the pennsylvania, and the syndicate which thus
seems 50 sOlictou5 for the interests OF the PENN
syivania makes IL as another condition that the
management OF the Baltimore and Ohio shall be
made satisfactory 10 the syndicate"